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Brown-Forman Board Rejects Unsolicited Proposal from Rival Sazerac
Summary
The maker of Jack Daniel's whiskey announced its board reviewed and dismissed an unsolicited proposal from spirits company Sazerac, a decision backed by its controlling shareholders.
Brown-Forman, the producer of Jack Daniel’s Tennessee Whiskey, announced Sunday that its board of directors had received and reviewed an unsolicited proposal from rival spirits company Sazerac. The board concluded that the offer was "not actionable," effectively rejecting the overture.
Controlling Shareholders Back Rejection
In a statement, Brown-Forman did not disclose the financial terms or value of the proposal from the privately held Sazerac. The decision to dismiss the offer was reinforced by Wolf Pen Branch, LP, an entity that represents a majority of Brown-Forman’s controlling Class A shares.
Wolf Pen Branch expressed its continued confidence in the company's portfolio of brands and long-term strategy. The shareholder group stated that Sazerac's proposal did not align with its vision for the future of Brown-Forman, signaling that any potential deal would face significant, likely insurmountable, opposition from the company's foundational ownership.
Context of M&A Interest
AdThis is the second known approach by Sazerac this year. Reuters reported in May that Brown-Forman had previously rejected a $32-per-share cash takeover offer from Sazerac, which would have valued the company at approximately $15 billion.
The recent proposal follows the termination of merger discussions between Brown-Forman and Pernod Ricard in late April, which reportedly ended after the two parties failed to agree on terms. The continued interest highlights Brown-Forman's attractive position within the global spirits market.
Sazerac, controlled by the Goldring family, owns a vast portfolio of over 500 brands, including popular names like Buffalo Trace bourbon and Fireball cinnamon whisky. Sazerac did not immediately comment on the matter, according to reports.
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